Inflation At 3%
“We feel the expansionary of the budget will have a positive impact on the country,” he said.
Thursday 03 August 2023 | 16:55
Inflation may rise to three per cent in six months after value added tax (VAT) increased to 15 per cent, it has been revealed.
It will rise slightly, said Reserve Bank of Fiji deputy governor, Esala Masitabua.
He said the VAT, which came into effect on Tuesday, was about balancing difficult choices.
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Inflation determines the rate of which prices of goods and services rise.
“We feel the expansionary of the budget will have a positive impact on the country,” he said.
It is expected to affect monetary policy which has been on 2.5 per cent for many months.
“The only way from here is up,” Mr Masitabua said.
“It is the lowest yet. It is important to coordinate.
“We have to watch very closely, and see development on the global front.”
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Story by: josefa.babitu@fijisun.com.fj
